• One in seven of Voluntary, Community, Faith and Social Enterprise (VCFSE) organisations across Birmingham City are employing staff who are being paid less than a Living Wage. These figures are reflected nationally, with a Living Wage Foundation report showing that over three quarters of the public back VCFSE workers to receive enough to live on

  • Many VCFSE workers receive an unequal wage with significant gender, age, ethnicity and disability pay gaps

  • Call for VCFSE organisations across the City to join a Living Wage Forum to tackle low pay in the sector
 

Low Pay in the VCFSE Sector

One in seven (14.5%) of Voluntary, Community, Faith and Social Enterprise (VCFSE) organisations across Birmingham City are employing staff who are being paid less than a Living Wage (BVSC State of the Sector Survey 2021).

This is in line with a Living Wage Foundation report published last week that reveals that one in seven (14.1%) of VCFSE sector workers nationally are paid below the Living Wage, with over three quarters of the public backing them to receive enough to live on.

The effects of the Covid-19 pandemic combined with the rising cost of living has left many VCFSE workers struggling. Despite increased demand for services, low pay is harming workers within the sector and threatening the stability of the services they provide.

An Unequal Wage

As well as receiving an unfair wage, according to the Living Wage Foundation report, many VCFSE workers receive an unequal wage:
  • Gender pay gap- 16.6% of women in the sector nationally paid below the Living Wage compared to 10.3% of men; 71.3% of all below Living Wage jobs in the VCFSE sector held by women.

  • Age pay gap- 58.4% of 16-19 year olds and 34.9% of 20-24 year olds in the sector nationally paid below the Living Wage

  • Ethnicity pay gap – Certain racialised minority groups face a heightened risk of low pay in the sector. ‘Other ethnic’, Pakistani and Bangladeshi, and Black African, Black Caribbean and Black British ethnic groups all have above average proportions of workers earning below the Living Wage

  • Disability pay gap – 16.5% of disabled workers in the sector earned less than the Living Wage compared to 13.1% of those who are not disabled

A VCFSE Living Wage Forum

BVSC is a Living Wage Employer. We are calling on VCFSE organisations across Birmingham City to join us in paying a Real Living Wage and help tackle low, unfair and unequal pay in the VCFSE sector by coming together in a VCFSE Living Wage Forum. The Forum will provide information, support and advice to VCFSE organisations on the Real Living Wage and be part of the Birmingham Living Wage City movement. The Birmingham Living Wage City movement includes BVSC and partner organisations such as the Living Wage Foundation, Birmingham City Council, Citizens UK and Barrow Cadbury Trust, our funder.
 

What is the Real Living Wage?

The real Living Wage is independently calculated based on what employees and their families need to live. This is why it’s higher than the government minimum wage, rebranded as the ‘National Living Wage’.

  • The real Living Wage is independently calculated based on what employees and their families need to live. This is why it’s higher than the government minimum wage, rebranded as the ‘National Living Wage’.

  • Employers voluntarily choose to pay it – changing people’s lives right now

  • It applies to all workers over 18 – recognising that young people have the same living costs as everyone else
     

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